Full text of Review (Federal Reserve Bank of Dallas) : March 1960
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BUSINESS REVIEW " MARCH 1960 Vol. 45, No. 3 BANKING ACTIVITY IN 1959 The year 1959 had its full quota of unusual events directly and indirectly affecting economic and financial activity. One signifi· cant factor was, of course, the 116-day steel strike. Despite the strike, howev~r, the year witnessed an all-time high level of industrial output. Production during the first half of 1959 was spurred by inventory accumulation in anticipation of both shortages from a steel mill shutdown and possible higher prices; in the second half, production outside the primary metals and associated industries held up surprisingly well. Personal income decreased less than 1 percent from the high mark set in June, began climbing again before the strike ended, and closed the year with another new score. Instalment credit established a record in 1959; the Federal debt rose to $290 billion; and the consumer price index, although registering a new high, increased only moderately, but the index of basic raw materials declined to a la-year low. The Treasury, issuing its "magic fives," discovered an unsuspected degree of interest elasticity and appeared to enjoy a turning point in its financing problems. Other economic and financial developments included a narrowing of the margin of the trade balance, with imports rising to an annual rate of about $15 billion for the first time, and a continuing loss of gold, though at only one-half the rate of the previous year. FEDERAL RESERVE DALLAS, BANK TEXAS OF DALLAS This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Monetary Policy Monetary policy was oriented toward maintaining the economic advance begun in the spring of 1958 by the exercise of increasing restraint over mounting credit demands during the first half of 1959. However, when strike effects began to lessen some credit demands, a general holding action was maintained by monetary authorities. The Federal Reserve banks raised their discount rates from 21/2 percent to 3 percent in March; to 31/2 percent in May; and, finally, to 4 percent in September. Reserve pressures were gradually increased until July, and net borrowed reserves (member bank borrowings minus their excess balances at the Federal Reserve banks) rose frem a daily average level of less than $100 million at the beginning of the year to over $500 million by early summer. After August, the net borrowed reserve figure declined slightly and fluctuated within a range of $400 million to $500 million. To meet seasonal needs for funds and to offset the outflow of gold, reserves were furnished the banking system by Federal Reserve open market purchases of Treasury bills. For the full year, net System open market purchases totaled $355 million. No changes were made in member bank reserve requirement percentages, but in December, as partial implementation of the new vault cash law, the banks were permitted to count part of their vault cash in meeting required reserves. At the end of the year, the active money supply (the public's demand deposits plus its currency holdings) was about $600 million, or 0.5 percent larger than a year earlier Increasing efficiency in the use of money was evidenced by a 6-percent gain in the turnover of demand deposits, which is about the same rise as in 1956-another year of revival accompanied by monetary restraint. L Economic Background The Eleventh District shared with the Nation many of the effects of changes in economic variables, such as the inventory accumulation and subsequent liquidation; the early gains in housing activity, which leveled off in the summer and then turned into declines in the faU , · and the general restraint of credit. Investors in the District, as well as the Nation, made adjustments in response to widening spreads between returns on stocks and yields on bonds. Consumers spent freely on durables and other goods and services, with an attendant substantial expansion of consumer credit. Throughout the Nation, but particularly in the Southwest, agricul- 1BUSINESS 12 REVIEW 3:1960 ture felt the effects of continued declines in farm prices and incomes. The District also had problems which, at least in their relative impact, were unique to the Southwest. For example, while the direct effects of the steel strike were more moderate in the region than in the northern and eastern areas of the country, the southwestern states suffered to a greater extent from the effects of strikes in the construction, copper, and oil industries. Furthermore, the recurring problem of excessive inventories of crude oil and refined products led to only small increases in crude oil production and refining. In addition, the states in this area were appreciably affected by the slowdown of Federal spending for the interstate highway system and by cancellations of defense contracts, particularly in the aircraft industry. The Texas index of industrial production began 1959 at a level of 167 (1947-49 = 100). As economic activity based partly upon continued recovery and partly upon strike-instigated inventory build-ups grew rapidly, the index reached a high for the year of 175 in May but declined to 167.5 in July as the effects of strikes became noticeable and, after recovering in the fall, closed the year at 170. Financial High Lights Credit demands in 1959 reflected over-all economic support from a high level of consumer purchases, a substantial volume of construction activity, and moderate increases in plant and equipment expenditures. Additional demands for funds came from the continued sizable needs of Federal, state, and local governments; the combined requests for credit exerted increasing pressures on the financial markets. Summarizing the effects of the foregoing factors upon banking aggregates for District member banks, it may be noted that, as in 1958, District changes in resources and deposits generally paralleled the national trends during the past year. District banking assets increased about 1.4 percent, but there was very little change in total deposits. . District gains in loans and investments, however, reflecting to some extent the differing economic factors discussed above, were somewhat smaller than the comparable national increases. Bank credit at District member banks rose 2 percent, whereas for all commercial banks in the Nation the advance was approximately 3 percent. In 1958, District bank credit had risen 12 percent, while credit extended by all commercial banks in the Nation had increased 9 percent. SELECTED BALANCE SHEET ACCOUNTS OF MEMBER BANKS 1959 AND 1958 Eleventh Federal Reserve District In thousands of dollars Dec. 31, 1959 Dec. 31, 1958 Change Loans (gross) ............ . . .. .. 4,948,492 3,469,058 4,699,388 3,544,026 3,189,959 8,569,965 2,089,920 849,568 249,104 - 74,968 -44,746 -16,307 24,515 59,580 1Iem Inv es tm ents • • ...• • •••..•.... • . • Cash and bank balances . .. . . . ... 3,145,213 ~e mand deposits . . ..... . . . ..... 8,553,658 Im e de posits .. . ... . ...... . ... . 2,114,435 Capital accounts . . . .. .. .. .. . . . . 909,148 Perc ent chang e 5.3 -2.1 -1 .4 -.2 1.2 7.0 banks; thus, a comparison with end-of·year call report information on all member banks suggests that much of the business loan strength came from country banks. Consumer-type credit could be considered the pacesetter in 1959, as individuals stepped up their purchases of durables, especially automobiles. Loans to individuals for personal expenditures increased $137 million, or 14 percent, at all District member banks, compared with a gain of only $23 million in 1958. Banks in both the District and the Nation, with reo In July, a new classification, "Loans to nonbank serves made available by a policy of monetary ease financial institutions," was established which, in this during the winter and spring of 1958, were poised to District, predominantly reflects the borrowings of sales participate in the rapid recovery that began in the finance companies and mortgage companies. It is estispring of that year. Since then, the margins of excess mated that this category of loans, formerly included in lending capacity have been steadily whittled down. A business loans, increased over $100 million during the look at loans and investments reveals the extent to year. which banks liquidated investments to facilitate loan Agricultural loans at the District member banks deexpansion. A more detailed examination and review clined $127 million in 1959. The reduction was due to of specific banking factors follows. a large cutback in the availability of CCC paper, which, Loan Demand in turn, was attributable to a smaller wheat crop and a Loan demand in the Southwest, changing but little modification of the cotton support program. Farm in the early part of 1959, accelerated toward midyear loans other than CCC paper increased moderately. and reached a peak in August. Moderately affected by There was practically no change in the outstanding the steel strike, demand declined in the early autumn level of borrowings for the purchasing or carrying of and then improved to close the year a shade higher than securities, and real-estate loans showed only a nominal the level attained in the late summer. Gross loans of gain. Eleventh District member banks advanced $249 milComparing loan growth at the larger banks (as indilion, or 5.3 percent - which is a little over one-half cated by data from the reserve city banks) with that the rise in 1958 but is considerably more than the in- at the generally smaller banks found in the "country crease in 1957 or 1956. Business loans and consumer- bank" category, it may be noted that a 5-percent overtype loans shared almost equally in the bulk of the net all loan increase was recorded for both classifications gain, tlle former rising an estimated $13 3 million and in 1959, although the dollar volume increase at the the latter, $137 million. larger banks was about one-third greater. However, if A review of information from the weekly reporting changes in the borrowings and reserve positions of member banks in the District's leading cities for clues TOTAL LOANS OF RESERVE CITY AND COUNTRY MEMBER BANKS to business loan changes discloses that the largest re1959 AND 1958 duction in borrowing occurred in the construction cateEleventh Federal Reserve District gory; although construction activity itself was a sus(As of last Wednesday in each month. In millions of dollars) taining economic factor during much of the year, the 1959 1958 trend in associated loan commitments was downward, Reserve city Country Rese rve city Country which is reflected in the lower year-end figures for such banks banks Month banks bonks loans. Loans to commodity dealers and to public utili- January • •. . .... ••. . 2,498 2,034 2,235 1,855 2,560 Fe 2,015 2,295 1,872 ties evidenced the largest gains. Other groups of bor- Mabruary •. ••.. .•.•..•.. 2,525 2,028 rch . .• .. .. • .. 2,356 1,881 2,550 2,043 April ..... . ... ..... . 2,299 1,873 rowers whose use of credit rose appreciably were Ma y ... . .. ..... ... . 2,539 2,057 2,309 1,893 2,604 2,081 Jun • ... .• •••. 2,351 1,9 25 petroleum companies (borrowing much less, however, Jut ye............• .. ... 2,646 2,100 . .. 2,363 1,948 2,648 2,117 Augu st • .•. ...•. .. . . 2,424 1,940 than in 1958) and grain and milling firms. The data Sept emb er • • .. . .. . .. 2,610 2,121 2,401 1,919 2,617 2,126 Octob er ... .... 2,418 1,940 also indicate that there was relatively little change in Nove mb er ••• .. ... ..• 2,617 2,138 . •.• 2,453 1,988 2,150 Decemb er ••.•. ....• • 2,690 2,574 2,030 Over-all business loans for the year at the reporting BUSINESS REV I EW 3: 1960 I Treasury to finance sizable budget and seasonal deficits without greater inflationary tendencies. RESERVE POSITIONS OF MEMBER BANKS Eleventh Federal Reserve District (Ave rages of daily Agures. In thou sands of dollars) December Dece mber 195ge 1958 '559,524 552,829 6,695 46,958 -40,263 569,078 561,149 7,929 8,387 -458 -9,554 -8,320 - 1,234 38,571 -39,805 '467,207 421,436 45,77 1 5,213 40,558 456,265 408,674 47,591 3,180 44,411 10,942 12,76 2 - 1,8 20 2,033 -3,853 '1,026,731 974,265 52,466 52,171 295 1,0 25,343 969,823 55,520 11,567 43,953 1,388 4,442 -3,054 40,604 -43,658 Ite m Change RESERVE CITY BANKS Total rese rves held . .... ... ...... . Required reserve s • •••••.. •. ...•.• Excess reserve s . .... ..... .. .... . . Borrowings • •••••..••. . . •.• •• • •.. Free rese rves •••• . ..•••..•• .•.• .• COUNTRY BANKS Total reserves held . ••............ Required rese rves • ••• ...• . ..... •• Excess reserves . ................ . Borrowings ••.• •..•....•••.. •... • Free reserves •• ••.• • •...• • •....•• ALL MEMBER BANKS Total res erves held . ............. . Required re se rves . ••..... •. .... .• Excess reserves . . .... . .......... . Borrowings •• ..••...•••...••...•• Free reserves •• ••••. ..• •• ..... ••• 1 Includ es allowabl e currency and coin. Esti moted. e- reserve city banks are compared with those of country banks, it is apparent that the city banks were under considerably more pressure in accommodating their customers. Average city bank borrowings from the Federal Reserve Bank in December 1959 were nearly five times above the year-earlier level, whereas country bank borrowings were approximately two-thirds higher. Affected by the policy of monetary ease in the first half of 1958, reserve city banks had "free" reserves most of that year (i.e., reserve balances higher than those legally required were more than borrowings from the Federal Reserve Bank). The picture changed markedly in 1959 as free reserves became "negative" or "net borrowed reserves" in large amounts. Country banks continued to have free reserves, but at a lower level. Many banks, especially the larger ones, faced the problem of more intensive screening of loans in 1959. Investments The 1959 decrease in District bank holdings of Treasury obligations was centered in Treasury certificates , while purchases were concentrated in notes and , bills. This change in holdings reflected the Treasury s expanded bill program (including the new quarterly cycle of 1-year bills) and its reliance upon notes to lengthen the debt, resulting in a reduce.d volume of o~t standing certificates. The 4% -percent mt~rest rate ceiling on bonds of more than 5-year matunty pr~vented the Treasury from tapping the long-term finanCIal market during the last half of 1959. As they sold securities to acquire reserves, District member banks also gave consideration to better maturity spacing and to more residual liquidity; in the pr?cess, they liquidated a large amount of bonds m.atunng after 10 years and, to a lesser extent, bonds wl~h maturities of between 5 and 10 years . Moderate mvestments were made in bonds with less than 5-year maturities and in FHA debentures. The banks enlarged their holdings of non-Government obligations by $42 million, or 5 percent. TOTAL INVESTMENTS OF RESERVE CITY AND COUNTRY MEMBER BANKS 1959 AND 1958 Eleventh Federal Reserve Di strict lAs of last Wedn esday in each month. In millions of dollars) 1958 1959 Month January • ... ... .•. . • february •• . ........ March .... . . ....... . April ........... .... May ............ ··· Jun e • .. . ... . , ...... Jul y .......... ..... . August .• .. . ... . ... . Roserve city bonks 1,480 1,453 1,381 1,409 1,4 18 1,351 1,354 1,4 18 1,334 1,399 1,342 1,390 Countr y bonks 2,095 2,109 2,053 2.087 2,049 2,013 1,999 1,982 1,973 2,008 2,043 2,075 Re se rve city bonks 1,171 1,157 1,252 1,376 1,447 1,509 1,469 1,589 1,504 1,498 1,570 1,51 2 Country bank s 1,863 1,843 1,870 1,902 1,867 1,862 1,856 1,892 1,921 1,982 2,029 2,03 1 In contrast with the large purchases of United States September •.. .. .. ...... .. Octob er ... ... . ... Government securities that occurred in 1958, District Nov emb er.. . • .... .... .. .... December member banks as a whole reduced their investment in Treasury obligations by $117 million, or 4 percent, in Turning again to separate data for reserve city banks 1959. This reversal of direction, which took place de- and country banks, there is evidence of the general spite widespread participation in Treasury financings extent to which the larger banks decided to go in meetthroughout the year, reflects the shift from a monetary ing loan demand, as reserve city banks accounted. for policy designed to increase bank liquidity during the the entire decline in District member bank holdmgs recession to one aimed at tempering the expansion of of Government securities. There was practically no credit in order to help avoid inflation and prolong ecochange in the total amount of Treasury obligations held nomic growth. Thus, in 1959 the banks liquidated Governments to obtain reserves. Nonbank demand, by country banks. attracted by high yields, facilitated the disposal of seAnother point of interest is the changes in types of curities and, at least on a temporary basis, enabled the investments held by the larger banks compared with BUSINESS REVIEW 4 3:1960 the smaller ones. While both categories heavily liquidated certificates of indebtedness, the city banks, presumably seeking liquidity, tended to buy bills but sell the notes which they acquired from time to time. On the other hand, the country banks, probably desiring the income therefrom, bought an appreciable amount of notes, although they also made net purchases of bills. Many of the note purchases of country banks were made in the fall after the Treasury issued the "magic fives." clined $27 million, or 2 percent, at the reserve city banks. It is possible that one factor explaining the time deposit gain at the smaller banks, despite an apparent outflow of investment funds from the District, may have been an increase in time and savings account facilities and the payment of higher interest rates on such accounts. TOTAL DEPOSITS OF RESERVE CITY AND COUNTRY MEMBER BANKS 1959 AND 1958 Eleventh Federal Reserve District Deposits Unlike the steadily upward trend of deposits associated in 1958, especially in the first half of the year, with the policy of credit ease, District member bank deposits declined during the first 7 months of 1959 and then gradually rose until they reached a year-end level that was approximately the same as at the close of 1958 . Demand balances contracted $16 million for a decline of less than one-half of 1 percent. An appreciable decrease occurred in the accounts of individuals and businesses, possibly because of increased interest in purchasing higher-yielding Government securities. However, the decline was approximately offset by additional government deposits. Time deposits rose $25 million, or 1 percent, reflecting gains in the balances of individuals and businesses and of the United States Government . State and municipal time deposits declined. The negative expenditure effect of the decrease in demand deposits was more than offset by an increase in bank debits at the District's reporting centers. In December 1959 the annual rate of turnover of demand deposits reached 25.7 at banks in leading District cities, compared with a rate of 24.4 in December 1958. The city bank-country bank data for 1959 show that demand deposits decreased about 1 percent, or $65 million, at reserve city banks and rose 1 percent, or $48 million, at country banks. Trend changes wer.e similar for the demand deposits of individuals, buslnesses, and governments at both classes of banks; in the case of bank balances, however, the trends were Opposite - demand deposits of domestic banks inCreased 8 percent at the smaller banks and declined 2 percent at the larger banks. This situation may have been part of the over-all modification of the seasonal pattern that occurred last fall. Country banks gained $52 million of time deposits (a 5-percent increase); this category of deposits de- (As of last Wednesday In each month. In millions of dollars) 1959 1958 Reserve city Country Reserve city Month banks banks bonks January ••. . ........ February •• • .. • .... • 4,931 4,956 4,883 4,877 4,909 4,883 4,817 4,962 4,956 4,904 4,866 5,085 5,077 4,995 4,947 4,959 4,931 4,931 4,867 4,902 4,932 5,015 5,116 5,179 4,407 4,427 4,617 4,755 4,797 4,982 4,859 4,955 4,938 4,890 5,095 5,481 March • . .. .. ..... . .. April ....... .. ..... . May ........ . •..... June • .•...•.•••...• July .... . .. . . ....... August •••...... . .. • September •....•.•.. October ••.•.. . • . . . . November ••• .. •..•• December • •••••••••• Country banks 4,642 4,616 4,634 4,671 4,608 4,692 4,678 4,759 4,770 4,838 4,988 5,079 Commenting upon the Eleventh District deposit picture as a whole, it might be noted that one reason why demand deposits did not experience any major im:rease in the last half of the year was the failure of the usual District fall inflow of funds to materialize to the extent anticipated. The normal inflow of funds from the marketing of crops was at least partially offset by funds moving out of the District as individuals, businesses, governments, and banks purchased United States Government securities having attractive yields. An additional factor may have been the decline in farm income and prices and its effect upon the dollar volume received from crop sales. Earnings and Expenses Net operating earnings of Eleventh District member banks, following the steadily rising trend of recent years, advanced 14 percent in 1959. Total earnings from current operations increased 12 percent and were matched by a proportionate gain in total operating expenses. Higher interest rates were the most signifi· cant factor in accounting for changes in both operating earnings and operating expenses, although the number and size of transactions also rose. All major earnings classifications registered gains, but the largest increases were $32 million, or 14 percent, in loan income and $10 million, or 12 percent, in investments. BUSINESS REVIEW\ 3:1960 On the other side of the picture, the most pronounced rise in operating expenses was an increase of $8.5 million, or 19 percent, in interest on time deposits, coupled with a $3.5 million rise in interest and discount on borrowed money. The latter item, in addition to being affected by higher interest rates, reflected the expanded volume of borrowings as banks attempted to ease reserve pressures. All other operating expenses also rose, with increases varying from 6 percent to 11 percent. Reports from reserve city banks and country banks support the observation made earlier that the larger banks were under more pressure in the utilization of funds . Net operating earnings of country banks rose 21 percent in 1959, compared with a gain of 8 percent for the city banks. The smaller banks, maintaining their holdings of Treasury obligations, enjoyed an appreciable increase in income therefrom, whereas city banks liquidated Governments to help relieve the heavier reserve pressures. Gains in loan income were proportional at the two classes of banks. Despite the sizable gain in operating revenues, District banks reported a 7 -percent decline in net profits for 1959. The lower level of net profits was largely accounted for by an increase of $13 million in losses, charge-offs, and transfers to valuation reserves on securities and a decline of $12 million in profits on securities sold. Both of these factors of change were associated with the lower level of bond prices and the sale of securities to obtain reserves and to adjust for tax losses. Despite the smaller net profits of 1959, 53 percent of such profits were paid out as cash dividends, compared with only 45 percent in 1958 . Losses, charge-offs, and transfers to valuation reserves on securities were proportionately very much higher at reserve city banks than at country banks. I BUSI NESS RE V IE W 3:1960 Both city banks and country banks had substantially lower profits on securities sold. The net result of losses and lower profits associated with investment portfolios was to reduce 1959 net profits of the country banks to approximately the same level as in 1958 and to reduce net profits of the city banks to 13 percent below the year-earlier level. The ratio of loans to deposits at the member banks rose from 43 .3 percent at the end of 1958 to 45.5 percent in December 1959. For reserve city banks the ratio advanced from 46.9 percent to 50.3 percent; at country banks the ratio only increased from 39.5 percent to 40.7 percent. The banks improved their capital-to-deposits ratio, raising it by one-half of 1 percent to 8.5 percent; 10 years ago, this ratio was less than 6 percent. The ratio of capital accounts to risk assets - the equity cushion afforded depositors by stockholders - rose two-tenths of a percentage point to 15 percent. Summary In retrospect, 1959 could be considered a profitable year for District banking. Capital positions were moderately improved, but constant efforts were required to meet loan demands and to maintain deposits. Reserve positions, particularly those of reserve city banks, were under pressure most of the year; vigorous loan demands led to the liquidation of Government securities and increased borrowings from both other commercial banks and the Federal Reserve Bank. Rising costs and decreasing liquidity required ingenuity and efficiency in the allocation of bank funds to competing demands. IRVING O. LINGER Financial Economist REVIEW BUSINESS BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS The success of traditional clearance sales at Eleventh District department stores during January resulted in a less than seasonal decline from December. Sales of selected items in both consumer durables and soft goods lines showed increases over a year earlier. New car registrations during the month in the District's four most populous areas were higher than in December but lower than in January 1959. Crude oil production and refining rose contraseasonally during the first half of February. Crude oil stocks remained in rough balance with industry requirements, but continued large refinery output at a time when demand for the major petroleum products Was unusually weak resulted in excessive inventories of refined products. Drilling activity within the District during January and the first part of February was well below the year-earlier rate. Nonagricultural employment in the District .states declined seasonally during January, follOWing a Eleventh District department store sales during January declined less than seasonally from December, reflecting the success of the traditional January clearance sales. The seasonally adjusted sales index reached a new high for the month at 172 percent of t?e 1947-49 average, which is up from 168 in the previOus month and 167 in January 1959. Preliminary data on District department store sales in January indicate that, compared with a ~ear ago, there were both gains and losses among the vanous types of consumer durables and soft goods. Sales of furniture and bedding and of men's wear rose 10 percent and 2 percent, respectively, over a year earlier, but sales of both major household appliances and women's and misses' accessories were lower than in January 1959. greater than seasonal increase in D'e cember. In Texas, unemployment rose to 5.4 percent of the labodorce, and the index of industrial production remained at 172, the highest level achieved since mid-1959. Construction contract awards in the District states increased seasonally from November to December, with strength noted in residential building. Recurring rains and cold fronts continue to check farm work in the District, and limited progress has been made in planting this year's crops. Livestock feeding continues heavy. Numbers of all cattle and calves, sheep, and hogs on farms and ranches in the District states rose during 1959. At weekly reporting member banks in the District, large deposit drains between mid-January and midFebruary were accompanied by substantial loan repayments and investment liquidation. Reporting banks also reduced cash assets and increased their borrowings. Reserve positions of member banks in the District tightened during January. INDEXES OF DEPARTMENT STORE SALES AND STOCKS Eleventh Federal Reserve District (1947.49 = 100) SALES (Dally avorag e) Date 1959, January....... November. . . . . Docember . . . . . 1960, January.. .. . . . r- 132r 208 291 136p 167r 182 168 172p STOCKS (End of month) Unadlusted 147r 207 170 159p Seasonally adjustod 167r 188 183 181p Revised. p- Unadjusted Seasonally adjusted Preliminary. Sales of household textiles, one of the principal items featured in the January sales, showed a year-to-year increase of 4 percent. Department store inventories in the District at the end of January were higher than a year ago but were down more than seasonally from the high December BUSINESS REVIEW 3: 1960 I DEPARTMENT STORE SALES HARVESTED ACREAGE OF PRINCIPAL CROPS (Pre liminary percentage change in retail value) (In tho usonds of acres) January 1960 from Average Area December 1959 Area Total Eleventh District ••••..••..•••...••...•••. Corpus Christi ••••. . ••.•••.•••.•• • .• .•.•••.. .• -55 Dallas .......... . ... ..... . .... ....... ...... . EI Paso ......................... . ......... .. Fort Worth ... ..... . ... . . ........ .......... .. -54 -57 -58 -54 -51 -53 Houston •••••• • ••••••• • ••••• , •.••••••••••••• San Antonio • •.. •. •...• • •..••..•••• . •..• ••• .• Shreveport, la .••••. •.•.• •• •• .• •••• .••••• • • • • n.o. Waco •••••••••••• • •••••• ••• ••••••• ••• ••• • •• n.O. Other cities . •••. • ••.. • ..••....••••.••••....• -58 n.O. - 1959 1958 1957 1948-57 Arizona •••.• •••••.. Louisiana •• •. ••• .••• 1,220 2,414 1,122 9,285 24,286 1,132 2,529 1,064 8,680 23,787 1,131 2,988 1,368 10,626 24,906 38,327 37,192 41,019 January 1959 -1 n.o. 3 -16 Texas •••••••••••••• 1,205 2,580 1,154 9,387 24,147 5 Total ............. 38,473 -4 -8 -6 New Mexico ••• • ••••• Oklahoma .. . ......• SOURCE : United 'States Department of Agriculture. n.o. -4 Not a vailable. level. The seasonally adjusted index was 181 percent of the 1947-49 average, compared with 183 at the end of December and 167 a year earlier. New car registrations in January in the four most populous areas in the District rose 8 percent over the relatively low December total but were still 11 percent less than in January 1959. A 37-percent increase in Fort Worth was the largest month-to-month gain; Houston and San Antonio also registered increases over the previous month. In Dallas, however, January registrations were 2 percent lower than in December. Year-toyear decreases were recorded in each area, ranging from 6 percent in Houston to 19 percent in San Antonio. The pattern of wet, cold weather which has characterized most of the winter continued during the past month. Rain, snow, and sleet - interspersed with only short periods of open weather - prevented widespread farm work. Preparation of soils is lagging in most eastern sections of the District, and many fields need working prior to the planting of corn and grain sorghums. Seeding of these two crops has progressed slowly in the Coastal Bend area of Texas, but cotton planting in the Lower Valley is well advanced. The high winds accompanying many of the rapidly moving fronts have resulted in some soil blowing in the Plains area of the District. Emergency til1~ge has been instituted by many farmers to control erOSIOn. Small grains continue to make slow growth as a result. of low temperatures. Some spring oats and barley ar~ bemg seeded as soils dry, and some fields of small grams have been fertilized to insure early pasturage. tender crops, such as cucumbers, cantaloupes, squash, and tomatoes. Dry-land vegetable crops in sections of south Texas need moisture, but crops in the Coastal Bend are making fair progress as a result of improved moisture. In northern Texas vegetable areas, cold, wet weather is limiting activity. Output of winter vegetables for fresh use in Texas is estimated to be 48 percent larger than the 1959 output and 1 percent above the 1949-58 average. Feeding of livestock continues relatively heavy in most sections of the District to offset the effects of inclement weather and the inability to turn livestock onto wet grain fields. Snow and the accompanying low temperatures in coastal areas have resulted in some livestock losses. In south Texas, ranchers have continued burning prickly pears for feed, but rains in the area are promoting the development of range forage. Feed conditions in the range states of the District as of February 1 were slightly improved from a year earlier in Oklahoma and Texas but were less favorable in Arizona and New Mexico. The number of all cattle and calves on farms and ranches in the District states as of January 1, 1960, rose to a new record of 17,096,000, or 8 percent above a year earlier. The number of milk cattle was fractionally LIVESTOCK ON FARMS AN D RANCHES, JAN UARY 1 ( In tho usandsl B U SINESS RE VI EW 8 3:1960 Unite d States Species 1960 1959 1960 1959 1960 Cattle ......... . Milk cattle . ... Beef cattle • ... Sheep .. ........ Stock sheep ... 9,276 1,099 8,177 6,074 5,843 231 1,263 218 15,51 1 391 8,5 10 1, 108 7,402 5,458 5,2 17 241 1,226 232 17,196 515 17,096 2,362 14,734 8,236 7,875 361 2,218 520 24,834 511 15,764 2,352 13,412 7,577 7,169 408 2,132 536 27,311 648 10 1,520 32,984 68,536 33,621 29,481 4,140 58,464 3,089 366,859 5,673 Feeders •••..• Hogs .. ......... Horses and mules. Winter vegetables continue to move in good volume as weather permits. Scattered frost and high winds in many south Texas areas in mid-February damaged Five southwestern stotes l Texas Chickens' • ...... Turkeys ..... .... 1 Arizona, louiliana, New Moxico, Ok lahoma, and Texas. ~ Does not include commercial broilers . SOURCE : United States Departme nt of Agriculture . 1959 96,650 32,735 63,915 32,945 28,497 4,448 56,924 3,142 383,529 5,923 higher than a year ago, but beef cattle inventories were 10 percent larger. The number of sheep in the District showed a 9-percent gain during 1959, and hog numbers rose 4 percent. Nationally, cattle numbers reached an all-time high of 101 ,520,000, or 5 percent above the year-earlier level; sheep inventories rose 2 percent. Deposits at weekly reporting banks in the District declined sharply during January and early February; and on February 17, total deposits at these banks were 5.4 percent below the year-earlier level. The decline in demand balances during the 4 weeks ended February 17 amounted to $225 million, compared with a decrease of only $8 million in the corresponding period of 1959. All types of demand deposits moved lower during the latest 4-week period, with the largest decreases occurring in interbank balances and balances of individuals and businesses. Demand deposits customarily show substantial contraction in January and February, but the latest decrease appears to exceed the normal seasonal movement. Time deposits at reporting banks expanded during the 4 weeks ended February 17 but remained about 1 percent lower than a year earlier. The 4-week increase totaled $46.7 million, reflecting primarily a rise in the accounts of state and local governments. Substantial reductions in loan and investment acCounts accompanied the deposit contraction. Gross loans (excluding loans to domestic commercial banks) decreased $33.4 million, contrasted with a loan expansion of $10.7 million in the comparable weeks of last year. Commercial and industrial loans, securities loans, and loans to sales finance companies showed substantial declines, while agricultural loans and consumer-type loans showed the only significant gains. In addition to loan liquidation, sales and redemptions of investments also were required to meet deposit drains. Reporting banks reduced their investment accounts by $56.5 million during the 4 weeks ended February 17. The reduction occurred largely in Treasury bill and certificate accounts, but holdings of Treasury notes and Government bonds also registered small declines. Since the combined reduction in loans and investments fell considerably short of the net deposit drain, the banks lowered their cash accounts and increased their borrowings. COND ITIO N STATI STICS OF WEEKLY REPORTING MEMBER BANKS IN LEAD ING CITIES Eleventh Federal Reserve Distric t (In thousand. of dol lars) Feb. 17, 1960 Item Jan. 20, 1960 1,476,337 32,221 1,499,480 31,244 Feb. 18, 1959 ASSETS Commercial and industrial loans ••••• •....•. . . Agricultural loons • • ••••.••.••••..•.••.....• loons to brokers and d ealers for purchasing 38,375 or carrying: U. S. Gove rnment securities •.•.. •........ .. Other sec urities • • •••• • .•...........•.... Other loons for purchosing or carrying: U. S. Government se curities ••• . . .. . . •.... .. Other securities ••••• . •••.•• . ..........•. L oans to nonbank flnancia l lnstitutions: Sales Rnance, persona l Rna nce, e tc.•........ Savings banks, mtg e. cos., ins. cos., etc . ...... loans to foreign bonks • • .....••.•.•. . .. ..•• L oans to dom estic commercial banks •• •• •...... Real-estate loans ••.......•..• • •••• . .. . •... Al l other loans ••...... . ... ..• •••.•... ....• 383 19,513 13,383} 12,517 21,802 8,524 193,582 8,605} 191,212 178,702 134,181 109,318 655 34,277 205,116 725,946 138,091 113,201 466} 15,165 206,095 724,919 --- Gross loans .•••....• •. ... • •••.. ••••..•• 2,940,053 l oss reserves and unallocated charge-offs • • 53,722 Net loans •... .. . .. .... .........••..•... 2,886,331 Treasury bills •. . ............ . .... ..•...... Tre a sury certlflcatos of indebtedness .... ...... Treasury not es and U. S. Government bonds, including guarante e d obligations, moturing: Within 1 year .. ... .... . ...... .... ... .. . After 1 but within 5 years • ..•..•......... After 5 years ......... . ..... •....... . .. . Other se curities •..•.•...•................. Tota l investments . • .• . . •......•.. ...... .. Ca sh items in process of collection .. .......... Balances with banks in the United States .....•• Ba lances with banks In foreign countries ..• •..• Currency and coin ••• .. .... ••.. . .•••...• . •. Rese rve s with Federal Reserve Bank ••.• • .. .... Other ass e ts •• • • .... •• .... ••.. ...•... .•... --36,422 22,524 71,552 760,379 316,211 370,230 2,954,378 53,523 --2,802,986 48,936 --- --2,900,855 2,754,050 - 77,29 1 - - -38,863 117,680 129,273 80,162 } 746,895 1,179,706 326,939 363,680 345,979 --- --1,577,318 1,633,830 --- --496,655 483,545 456,056 2,270 48,707 555,985 2 17,931 13,030 217,882 1,772,638 489,876 2,086 50,542 561,140 229,210 486,330 504,827 1,734 47,755 587,110 185,106 2,959,524 103,264 241,912 959,125 15,550 5 1,593 2,890,952 147,9ti7 244,909 948,985 14,914 149,156 --- --- --6,351,084 6,339,550 TOTAL ASSETS .•..................... 6,241,253 LIABILITIES AND CAPITAL ACCO UNTS De mand deposits Individuals, partnerships, and corporations .. .. 2,838,777 United Stotes Gove rnment •••••••••••.• • .• 93,863 Stat os and poli tical subdivisions • • ••• • ..•••• 216,936 8anks In the United State •. . . . . • ..•.. ..•..• Bonks in for e ign countries •••••....••••..•• CertiRe d and ofAcers' checks, etc .•••••••••• 892,228 14,029 50,131 -105,964 -4, 4,330,968 Time d e posits Individuals, partnerships, and corporations .••• 1,0 14,873 Unit e d States Governm e nt • • •••••..••••••• 11,255 Postal savings .• ••••••. • • . •••••••••••.• • 394 States and politica l subdivisions • • .•••••• •• • 239,110 Bonks in the U. S. and foreign countries • • •••• 6,663 --- 1,033,589 6,255 394 178,687 6,640 1,087,271 7,130 421 186,932 6,871 Tota l d e mand d e posits ••..••.• ••• . . ••.. Total time deposits •••...........•..•.• --- --4,396,903 --- --- --1,272,295 1.225,565 1,288,625 5,378,259 184,800 All other liabilities . ....... . .... .......... .. 132,552 Capitol accounts •••........• ........ .... .. 545,642 Tota l deposits •.•..........•.•...• . . Bills payable, rediscounts, etc .. . ............. TOTAL LIABILITIES AND CAPITAL ACCO UNTS 6,241,253 --5,556,53 3 115,625 138,089 540,837 5,685,528 41,700 90,517 521,805 --- --6,351,084 6,339,550 NOTE.-E~cctive J uly 1, ~959, this series was revised . The re vised form includes seve ro l new Itams, the most Important of which Is loans to Rnanda l institutions previously reporte d against other loan categories. Comparable yea r-e arlier figures for th e new items will bo shown whe n thoy become available. Reflecting largely an increase on the part of reserve city banks, daily borrowings from the Reserve Bank rose from $52 million in December to the unusually high level of $83 million during the 4 weeks ended February 3. Borrowings by country banks also rose, but country banks as a group retained comfortable free reserve positions, BU SI NESS REVI EW 3:1960 I DA ~LAS CONDITION OF THE FEDERAL RESERVE BANK OF NEW MEMBER BANK The First National Bank of Jasper, Jasper, Texas, a newly organized institution located in the territory served by the Hpuston Branch of the Federal Reserve Bank of Dallas, opened for business February 6, 1960, as a member of the Federal Reserve System. The new member bank has capital of $250 ,000, surplus of $ 150,000, and undivided profits of $100,000. The officers are: Joe H. Tonahill , Chairman of the Board; W. l. Neal, President; H. l. Swearingen, Vice President; and Alton Holt, Vice President and Cashier. (In thousands of dolla rs ) Ite m Feb. 17, 1960 Jan. 20, 1960 Feb. 18, 1959 Total gold certiflcote rese rves... .. . . .. .. ... . Discounts for memb er bonk s. ... .... ... . . . . . 683,576 85,526 671,094 64,1 26 174 1,018,254 1,08 2,55 4 974,765 803,35 2 783,026 11,041 952 997,686 1,009,679 1,004,943 777,270 Othe r discounts and advances . .. . . . .... .. . . U. S. Governm ent securiti es . . . .. . . . .... . .. . . Total e orning a sse ts •.. . ... .. .... .. .. .... .. M emb er bonk rese rve de posits.. . . .... .. ... . Fed eral Reserve not es in actua l circulation .... . RESERVE POSITIONS OF MEMBER BANKS Eleventh Fe deral Reserve District NEW PAR BANKS The Village State Bank, Beaumont, Texas, an insured nonmember bank located in the territory served by the Houston Branch of the Federal Reserve Bank of Dallas, was added to the Par List on its opening date, February 12, 1960. The officers are: Edward Garrett, President, and l. A. Gentry, Jr., Vice President and Cashier. The Mercantile Bank and Trust, San Antonio, Texas, a nonmember bank located in the territory served by the San Antonio Branch of the Federal Reserve Bank of Dallas, was added to the Par List on its opening date, February 17, 1960. The officers are: W. G. Pope, President, and T. Kellis Dibrell, Vice President. (Ave rag es of daily fl gures . In thousand s of dollars)' The Bridge City State Bank, Bridge City, Texas, an insured nonmember bank located in the territory served by the Houston Branch of the Federal Reserve Bank of Dallas, was added to the Par List on its opening date, February 27, 1960. The officers are: E. R. Odom, Chairman of the Board; James H. Little, President; B. J. Fields, Inactive Vice Pres:dent; and Martin l. King, Cashier. Earning assets of the Federal Reserve Bank of Dallas rose $12.8 million during the 4 weeks ended February 17, and the Bank's gold certificate reserves registered almost as large a gain. The expansion in earning assets stemmed from the increase in discounts for member banks. In line with the seasonal pattern, Government security holdings of the Dallas Federal Reserve Bank declined as a result of System sales to absorb the seasonal return flow of currency. The Bank's Federal Reserve notes in circulation decreased $13.9 million in the 4-week period but remained almost 2 percent higher than the year-earlier leveL BUSINESS REVIEW 10 3:1960 Fe b. 3, 1960 Month of Dec. 195ge Month of Jan. 1959 548,015 544,963 3,052 542,260 5,755 73,519 -67,764 559,524 557,2 16 2,308 55 2,829 6,695 46,958 - 40,263 567,57 2 475,349 468,572 6,777 422,289 53,060 9,579 4 3,481 467,207 460,018 7,189 4 21,436 45,771 5,213 40,558 465,734 1,023,364 1,013,535 9,829 964,549 58,815 83,098 - 24,283 1,026,731 1,017,234 9,497 974,265 52,466 52,17 1 295 1,033,306 4 w ee ks end e d Ite m RESERVE CITY BANKS Totol rese rv es held . .... .. . .... . . . With Fed era l Rese rve Bank . . . . •. Co sh allow ed as reserves .. . .•. . . Re quired reserv es . ... . ..... ...• .. Excess rese rves . . . . . .. . .... .. . .. . Borrowing s• . .. .. . . . . .. ..... . . .. . Free re se rves • . .... • . . .. ..... ... . COUNTRY BANKS Total rese rves held . .. . . . . . ...... . With Fed eral Rese rve Bank • .... . Ca sh allow ed a s rese rves . . . .... . Re quire d rese rves . . .. .. .. . ... . . . . Excess reserves . ....... •. •. .. ... . Borrowing s. . . . .. .. ..... ... . . . . . . Free rese rves •.. . . .. ..• . . . . .... .. All MEM8ER 8ANKS The Pinemont State Bank, Houston , Texas, a nonmember bank located in the territory served by the Houston Branch of the Federal Reserve Bank of Dallas, was added to the Par List on its opening date, February 19, 1960. The officers are: Dudley C. Sharp, Chairman of the Board; Newton Gresham, President; James B. Thomas, Executive Vice President; and Frank Jennings, Jr., Vice President and Cashier. o 1,009,809 1,095,335 962,914 789,4 25 Tota l rese rves held . . .. . . . . ... . .. . With Fed eral Rese rv e Bank . . . .. . Cash allowed a s reserves. . ..•... Require d rese rves . . .... . .. ...... . Excess rese rv es • •. . .. .... .. . . • • .. Borrowing s. .. . . . . .. .. ...• .. . ••. • Free rese rves • ... ... . ... . .. . . . . .. e- Estimated. 559,600 7,972 28,765 - 20,7 93 416,695 49,039 2,020 47,019 976,295 57,011 30,785 26,226 h I h . NOTE.-Reg ulatian s pe rm i tt ing memb e r banks to count part of t e lr vau t cos In mee tin g reserve requirements becam e effecti ve in D ecemb e r 1959 , and on January 1, 1960 th e rese rve computation period for country memb e r banks wa s chan ge d to a biwe~ klY ba sis. Th ore fore , monthly data comparabl e to year- earli er material are not availabl e. Crude oil production in the District during the first half of February averaged 3,153,000 barrels daily, or 3 percent less than a year earlier. Nevertheless, production was nearly 4 percent above the January level, contrasted with a slight seasonal decline normally, as daily average allow abIes were increased significantly in Louisiana and more moderately in Texas. In the Nation, crude oil production rose only 2 percent over January but averaged slightly greater than in February 1959. Crude oil stocks of District origin continued to decline well below the year-earlier level; and national crude oil stocks, which totaled 248,916,000 barrels on February 13, remained 3 percent lower than a year ago. Total imports of crude oil and refined products averaged 1,873,000 barrels daily in January and the first part of February, as purchases of foreign products rose NONAGRICULTURAL seasonally. Compared with early 1959, imports of refined products were 7 percent smaller, crude oil imports averaged 13 percent greater, and total imports rose 2 percent. ~MPLOYMENT Five Southwestern States I Percent change Numb e r of p ersons Jan. 1960 from January Crude runs to refinery stills in the District during the first part of February advanced contraseasonally by 2 percent to a daily average rate of 2,394,000 barrels and were 9 percent greater than a year ago. Crude runs in the Nation declined moderately but remained at the year-earlier level. In the 5 weeks ended February 12, demand for major refined petroleum products decreased slightly and continued well below a year ago. Sales of all classes of heating and fuel oils were unseasonably low, and gasoline demand was less than 1 percent above the total in the comparable period of 1959. Decemb e r January 1960e Type of employment 1959 Dec. 1959r Jan. 1959 1959 4,450,600 78 2,500 3,668,100 247,700 300,400 4,244,500 761,800 3,482,700 255,000 301,400 -2.4 -1.2 -2 .7 .9 -5.6 2.3 1.5 2.5 -2 .0 -5.9 409,000 1,143,500 194,100 535,700 837,700 394,900 1,031,200 186,500 505,400 808,300 -.6 -6.2 .1 -1 .0 -.7 3.0 4.1 4.1 4.9 3.0 Total nonagricultural wag e and salary workers . . 4,343,200 773,100 3,570,100 Mining . . .. ..... .. .. . . 250,000 Construction . .. .. .. . ... 283,700 Manufacturing . •.. .. . ... . Nonmanufacturing . ... • ... Tran sportation and public utilitie s . . ... .... . . . . 406,700 Trad e . . . ... . . .... . . . . 1,073,000 Finance ••. ....... . .••. 194,200 Servic e • . ... . .. . . . . . . . 530,200 Governm ent . . .... .. . •. 832,300 I Ari zona, Loui siana, N ew M exico, Oklahoma, and Texa s. Estimat ed . r - Revised . e- SOURCES, State employme nt agencies. Federa l Reserve 8ank of Dallas. INDUSTRIAL PRODUCTION Reduced heating oil requirements - resulting from prolonged mild weather in the northern states - and Continued relatively large crude runs to refinery stills Sharply limited normally expected seasonal declines in stocks of refined products during January and early February. On February 12, stocks of gasoline were 4 percent greater than a year earlier, kerosene stocks were 19 percent higher, and distillate fuel oil stocks were up 34 percent. Stocks of all major refined products totaled 398,995,000 barrels, or 10 percent more than a year ago. Large stocks of refined products and the anticipation of seasonally lower demand reduced March purchaser nominations for Texas crude oil. Production in Texas will be limited to 10 days in March and is expected to average 2,690,000 barrels daily, or 4 percent less than in February. Nonagricultural employment in the District states declined seasonally during January, following a greater than seasonal increase in December. At mid-January, District nonfarm employment totaled 4,343 ,200, compared with 4,450,600 a month earlier. SeasonaL employment declines were centered in trade, construction, and manufacturing. Settlement of labor disputes in the copper industry resulted in modest gains in mining employment. Unemployment in Texas increased seaSonally by 29,700 workers during January to 189,100, Or 5.4 percent of the labor force. The seasonally adjusted index of Texas industrial production during January remained at the revised (Sea sonally adiusted indexes, 1947·49 = 100) January Ar ea and typ e of index December 1960p November 1959 1959 172 214 252 196 132 172 211 246 195 134 169r 208 244 192r 131r 171 201 234 186 142 169 169 181 159 128 279 165 164 172 158 129 277 155r 154 155r 157 126r 270r 152r 150r 156r 148r 128r 259 January 1959 TEXAS Total industrial production . . • . Total manufactur es . • . • . . . . . Durabl e manufactures ... .... Nondurable manufactures • . . . Mining •• • .. .. .. . .. .. ... . . UNITED STATES Total indu strial production . . . . Total manufactures . . ... . . .. Durabl e manufactures. .... . . "'ondurabl e manufacture s•. .. Mining . . . .. ..... .. ... . . . . Utilities • ................. . p Pre liminary. r - Revi sed . NOTE.-The 80ard of Gove rnors ' industrial production index has been revised sub. stantially to Includ e output of utiliti es and to take into account certain other develop. me nts of th e pa st few years. SOURCES , 80ard of Gove rnors of th e Federal Rese rve System. Federai Reserve 8ank of Dalla s. December rate of 172 but was 3 points below the record established in May 1959. Durables and nondurables manufacturing moved higher, while the important mining sector, which includes crude oil production, declined more than seasonally. In the durable goods sector, the largest increases were noted in primary metals, electrical machinery, and transportation equipment production. A contraseasonal increase in petroleum refining accounted for most of the rise in nondurables output. Construction contract awards in the District states advanced seasonally by over 7 percent from November to December, with residential awards rising on an adjusted basis. Total construction contracts awarded in the five states during 1959 were 2 percent less than in 1958; the 8-percent increase in residential building was more than offset by the decline in nonresidential construction. BUSINESS REVIEWl 3:, 960 1 11 I CONDITION STATISTICS OF ALL MEMBER BANKS BANK DEBITS, END-OF-MONTH DEPOSITS AND ANNUAL RATE OF TURNOVER OF DEPOSITS E)eventh Federal Reserve District (Dollar amoun ts in thousands) (In mill ien s of dolla rs )' Debits to d emand 1960 Are a Jo n. 1959 1959 Ann ual rate of turnover Jon. 3 1, 1960 Dec. 1960 1959 1959 Jan. Jon . ARIZONA Tucson . ..•. .. . ..• . .• $ 24 1,545 Jon. 28, 1959 loan s and di scounts.• ... . . ..... . .. . .... . Unite d Stat es Governm ent obligations.. .... Oth er se curiti es . . .... .. ..... . . .. . .... .. Rese rves with f ed eral Reserve Bank •••• ... . Ca sh in voult e . . .. .•... . ... •.. , .. .. . . . . Balances with bonks In th e United States . • .. Balances with ban ks in forei gn countri es e .. .. Co sh ite ms In proc ess of coll ection • •... .... Oth er a ssetse ••• .. . ..• ..... . . .•. ...... . 4,738 2,54 8 86 2 920 150 1,005 2 507 340 4,840 2,605 860 922 159 1,139 2 583 354 4,532 2,759 816 985 144 1,029 2 492 289 11,072 11,464 1,094 6,642 2,1 45 1,253 6,900 2,111 1,120 6,780 2,108 Borrowing se . . .. .... . .. ...... .. . . .. ... . Oth er liabllities e . .. . •....... . . .... . . . .. Total cap ital accountse . .. . . . .. . .••... .. . 9,881 101 175 915 10,264 116 138 946 10,008 53 114 873 TOTAL lIA81LITIES AND CAPITAL ACCOUNTSe .... ... .... . .. . ...... . 11,072 11,464 Ite m Percent Dec. Dec. 30, 1959 De mond deposits' change from Janu ar y Jon. 27, 1960 TOTAL ASSETse . . .... ..... .. . ... .. .. de posit a ccounts l - 3 4 $ 147,003 19. 1 19.8 22.7 85, 138 342,749 - 2 -4 6 4 53,8 42 197,997 18.4 20.4 18.7 21.2 18.4 21.6 40,610 -8 5 31 ,353 15.2 16.1 14.5 99,740 2 16,551 227,107 158,865 204,599 19,156 3,077,131 350,344 7 90,8 5 1 91 , 127 2,5 38,0 29 30,740 298,224 66,535 52,905 60 2,658 22,94 8 86,488 110,183 126,84 2 - 7 - 9 6 - 12 9 -2 - 6 - 12 - 9 - 11 - 13 7 2 - 8 - 2 -7 - 8 -2 -4 -3 2 -2 15 -3 0 -4 13 - 7 -4 7 -1 14 22 -3 -2 3 5 -7 1 6 64,362 117,5 45 138,970 102,185 110,956 19,937 1,132,01 4 170,767 361,959 66,016 1,284,735 22,5 33 130,409 44,7 47 46,559 365,534 16,634 60,793 68,008 105,736 18.5 2 1.8 17.8 18.1 21.4 11.3 31.0 24.5 25.7 16.8 23.3 16.2 27.0 17.6 13.6 19.6 16.7 16.7 19.0 13.4 19.8 23.8 15.8 19.7 19.7 11.4 32.8 28.2 27 .5 19.2 27 .1 15.4 27.5 19.3 13.9 20.9 18.4 17.2 19.6 13.9 18.1 2 1.5 16.1 18.1 20.9 11.0 27.1 25.3 25.8 15.8 24.0 14.6 22 .3 17.5 14.4 17.9 15.2 17.5 17.9 12.5 Tatal- 24 cities ... ..... $9,881 ,0 65 -8 4 $4,860,594 23.8 25.7 ASSETS 22.8 LOUISIANA M onro e • ••...... . .. • Shreveport . ..•..... • NEW MEXICO Roswell • •• • ••••.••. . TEXAS Abil ene ••. • •. .. . ... . Amarillo ...... . . . . . . Austin . . .. . ..... . .. . Beaumont •.• •••• ..• • Corpus Chris ti . ... . ... Corsicana .. ...... . .. Dalla s .. .... .. .. ... . EI Paso •. . . . . . ...... Fort Worth ........ . . Ga lveston ........ .. . Housto n •• •• •• . • •••. Lo re do • ...... •• .. . . Lubbock • . .. ...• ••.. Port Arthur .. . . ... .. . San Ang elo • .. .. ... . San Antonio . .. .•..•. Texa rkana ::! • ••••••.. Tyler .. .. .. ... . ... . . Waco . ..... . . . . .... Wichita Falls ..... • .. lIA81LITIES AND CAPITAL ACCOUNTS Demond de posits of bonks . .. . ... . .... ... Other de mand deposits ...... . . .. . . . .... . Tim e d eposits.•. .•. . .. . .. . . .• .. . ... •. . . Total deposits . ••.. . . . .. ... .. . .. .. .. . e - Estimated. GROSS DEMAND AND HME DEPOS ITS OF MEMBER BANKS Eleve nth Federa) Reserve District (Ave rag es of dolly flgure,. In million . of dollars) 1 De posits of ind iv idu a ls, partners hips, and corporat ion s and of states and pol it ical subdiv ision s. in Texarkana , Texa s-A rkan sas, including on e bon k located in th o Eighth Dis trict, am ounted to $48, 558,000 fo r the mont h of January 1960. January- Decemb er Area and typ e FIVE SOUTH WESTERN STATES' .......... Novemb er Dece mb er 1959 1959 1958 234,871 108,085 126,786 2,3 47,980 1,084,065 1,263,91 5 249,017 124,793 124,22 4 2,281 ,881 981 ,01 2 1,300,869 25 2,14 5 113,5 37 All other .. .. .. . . .. 138,608 UNITED STATES.. .. .. 2,224,060 Resi d ential . • . •. .. . 993, 185 All other ... . .. ... . 1,230,875 Resid ential. . ... . . . Dat e Octob er . . , Novemb er. • Dece mb er. . (In thousands of dolla rs ) Dece mb er Rese rv e 1958:January .. • 1959. January . .• Septe mber. VALUE OF CONSTRUCTION CONTRACTS AWARDED 1959 TIME DEPOSITS GROSS DEMAND DEPOSITS ~ These flg ures incl udo onl y two ban ks in Texar kana, Texas . Total debi ts for all ban ks 1960. January ... Tota l city bonks 7,573 8,106 7,779 7,782 7,919 8,052 8,084 3,656 3,952 3,858 3,820 3,823 3,904 3,912 Country bonk s 3,917 4,154 3,921 3,962 4,096 4,148 4,172 Reserve city ban ks Total 1,684 2,090 2,113 2,099 2,100 2,099 2,111 Country banks 795 984 1,026 1,021 1,023 1,022 1,030 889 1,106 1,087 1,078 1,077 1,077 1,081 1958 3,882,290 3,939,728 1,827,549 1,691,041 2,054,74 1 2,248,687 36,268,544 35,089,703 17,149,677 14,695,531 19,118,867 20,394,172 BUILDING PERMITS VALUATION (Dollar amounts In thousands) Pe rcent chang e NUM8ER I Arizona, lou isiana , N ew Mex ico, O kl ahoma, and Te xa s. January 1960 from SOLJRCE. F. W. Dodge Corporation. Janua ry Area DAILY AVERAGE PRODUCTION OF CRUDE OIL January Dece mber January 1960 1960 1959 1959 -4 1 192 ARIZONA (In thousands of barre ls), 592 $ 3,222 528 2,141 23 6 Wichita Falls . ... .. 151 167 227 196 58 1,303 372 538 64 1,062 255 128 879 183 209 1,201 2,841 2,771 569 1,055 11,799 2,169 3,273 92 17,049 4,058 1,091 3,063 1,866 1,672 - 64 - 52 35 - 30 10 15 - 44 28 - 84 - 25 76 2 18 - 43 157 140 - 50 -48 - 35 -56 - 43 -2 - 51 7 -61 -10 15 130 -36 21 37 Tatal-17 citi es •..• . . 6,912 $59,93 2 - 14 -13 Tucson ••• . .... . .. . LOUISIANA Chang e from January Are a January Decemb er 1959 ' 1959' 1959 3,009.0 2,640.1 4 89.5 1,188.8 140.6 108.9 712.3 255.3 113.6 4,091.3 7,100.3 3,285.5 2,912.9 536.7 1,284.1 161.5 117.7 81 2.9 249.8 122.8 3,937.9 7,223.4 1960' ELEVENTH DiSTRiCT • • • •.. .. 3,04 2.3 Tex a s. ... . . ..•....•.•. . 2,670.2 Gulf Coast ...... .. .. .. 498.9 W est Texa s . ... . . .. .•• 1,208.7 East Texa s (p roper) .. . .. 142.2 Panhandle • • . . ...... .. 109.3 Rest of State .. .... . ... 711.1 Southea stern N ew Mexico •. 258.9 Northern Louisiana . • . . .. .. 113.2 OUTSIDE ELEVENTH DISTRICT. 4,110.8 UNITED STATES .. .... .... .. 7,153.1 SOURCES . Decemb er 1 Estimated from Ame ri can Petrole um ~ United States Bureau of Mines. BUSINESS REVIEW 12 3: 1960 33.3 30.1 9.4 19.9 1.6 .4 -1.2 3.6 - .4 19.5 52.8 Institute weekly reports. January 1959 -243 .2 - 242.7 - 37.8 - 75.4 - 19.3 -8.4 - 101.8 9.1 - 9.6 172.9 70.3 Shreveport • .. . ... • TEXAS Abll . ne .. ... .... . . Amarillo . ... . . . . . . Austin . .... . . . ... . Beaumont •. • . .... . Corpus Christl • •• • .. Dallas .. ...... . ... EI Paso •.. .......• Fort Worth .. . . .. .. Galveston ...• . .... Houston • • . . .. . . . . Lubbock . ... . ... .. Port Arthur . • .... • . Son Antonio •.. .. . . Waco •• ..•.•. .. ..
